HK's Order Backlog Soars 141% as Semiconductor Fab Expansion Drives Surge in Laser Equipment Demand

Order backlogs for HK, a domestic company specializing in laser processing machines, have more than doubled over the span of one year. This surge is attributed to the intensified infrastructure investment driven by major Korean semiconductor companies expanding their fabs, which has in turn led to a rise in demand for laser processing machines among related manufacturers. Industry observers note that if subsequent demand tied to investment in semiconductor production equipment materializes, the company's mid- to long-term growth trajectory could continue.

On August 27, HK announced that, as of the first half of this year, its order backlog stood at 34.6 billion won, marking a 141% increase compared to the same period last year. The total order amount for the first half of this year also rose by 59.7% year-on-year, reaching approximately 48.9 billion won from 30.6 billion won. The company expects a significant portion of these orders to be recognized as sales within this year.

With a recovery in the semiconductor industry and growth of the artificial intelligence (AI) sector, investments in semiconductor manufacturing facilities both domestically and internationally have increased, which has, in turn, affected HK’s order inflow. Building new semiconductor fabs requires the precise processing of various metal materials such as piping, steel frames and structures, and electrical and HVAC systems.

The laser processing machines that are HK’s main focus are state-of-the-art machine tools designed to cut and process metal materials. In particular, demand for high-output laser processing machines has been rising recently, as higher precision and productivity are increasingly required for materials such as specialty steels.

The company’s client base within the semiconductor value chain is expanding rapidly. Last year, three companies directly involved in the value chain of major domestic semiconductor corporations became clients, and in the first half of this year, an additional four were added. A large number of infrastructure companies associated with fab construction have joined as new clients.

Client growth was especially notable in the metropolitan area and Chungcheong region, where fab investments are concentrated. The cumulative number of clients in these regions was 45 as of last year, but 28 additional clients were acquired just in the first half of this year, bringing the total to 73—a roughly 62% increase in just over a year.

HK anticipates that the benefits of fab expansion will not be limited to the initial stages of infrastructure development. Investments in semiconductor fabs typically proceed from basic facility construction—such as buildings, piping, electricity, and HVAC systems—to the installation of production equipment and the associated facility investments. Currently, equipment demand is arising from the infrastructure companies involved in fab construction, but it is expected to expand in the future to companies that manufacture semiconductor production equipment and parts.

The company is also seeking growth opportunities in overseas markets. As construction of semiconductor production bases accelerates in key countries such as the United States and Japan, HK is strengthening its sales and service network to target relevant manufacturers in these regions. Especially in markets where the use of Chinese equipment is restricted, the company notes that there could be a growing demand for equipment with proven quality and maintenance capabilities.

An HK representative said, "Our order volumes have grown since last year as our competitive edge in equipment quality and performance aligns with the fab expansion cycle. The rapid increase in our client base in the metropolitan and Chungcheong regions validates this growing demand."

The representative added, "We are also seeing semiconductor infrastructure expansion tied to AI industry growth, such as additional fab expansions, in the Honam region. Moving forward, we plan to step up our sales efforts there as well, aiming to gain new customers, following our activities in the metropolitan and Chungcheong regions."

This content was produced with the assistance of AI translation services.